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Consumers whom Columbia Debt Recovery LLC, doing business as Genesis, contacted to pay interest on a Maryland or Virginia lease between March 25, 2024, and Aug. 1, 2025, may qualify to receive a cash payment and credit reporting relief from a class action settlement.
Columbia Debt Recovery LLC, also known as Genesis, agreed to pay $200,000 to settle a class action lawsuit alleging it sought to collect interest from consumers under Maryland or Virginia leases even though the leases and state law did not permit such charges.
Who are the class members?
Class members must meet the following criteria:
- They were a party to a lease in Maryland or Virginia.
- Genesis (Columbia Debt Recovery LLC) contacted them to collect interest.
- The contact occurred between March 25, 2024, and Aug. 1, 2025.
There are two categories of class members:
- Those who paid interest to Genesis during the relevant period.
- Those whom Genesis contacted for interest payment but did not pay.
The settlement administrator used Genesis’s records to identify class members.
How much can class members get?
The total settlement fund is $200,000. The settlement administrator will use the fund to:
- First, reimburse class members for any interest they paid to Genesis during the class period
- Second, deduct administrative costs, attorneys’ fees and service awards
- Third, distribute the remaining funds equally among all class members as statutory damages
The statutory damages payment will be approximately $3.27 per class member in addition to a full refund of any interest paid to Genesis.
In addition to cash payments, the settlement requires Genesis to remove any reports of the relevant collection accounts from consumer credit reports and not report these accounts to credit bureaus in the future.
No claim form needed to receive payment
Class members do not need to file a claim to receive payment. The settlement administrator will automatically send payments to all eligible class members after it resolves any appeals and the court grants final approval.
The settlement administrator will use the contact information on file. Those who moved or need to update their address should notify the settlement administrator as soon as possible and provide their full name, previous and current address, and Notice ID.
Class members who need to submit a name change due to marriage, divorce or court order must provide supporting documentation (such as a marriage license or court order). Those who wish to claim a payment on behalf of a deceased class member must provide a copy of the death certificate and documentation showing the new payee is a legal beneficiary..
Settlement administrator's contact information: McKay v Columbia, c/o Settlement Administrator, PO Box 23309, Jacksonville, FL 32241, info@leaseinterestsettlement.com
$200,000 settlement fund breakdown
The $200,000 settlement fund covers:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $66,666.67
- Service awards to class representatives: Up to $5,000 each for two plaintiffs ($10,000 total)
- Payments to eligible class members: The remainder of the fund
Important dates
- Exclusion (opt-out) deadline: Nov. 27, 2025
- Final approval hearing: Jan. 9, 2026
When is the McKay v. Columbia Debt Recovery LLC payout date?
The settlement administrator will mail payments to eligible class members approximately 35 days after it resolves appeals and the court grants final approval to the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Columbia Debt Recovery LLC, doing business as Genesis, attempted to collect or collected interest from consumers under Maryland or Virginia leases where such interest was not permitted by the lease or state law. The plaintiffs claimed this violated the Fair Debt Collection Practices Act.
Genesis denies any wrongdoing or violation of the law. The parties agreed to settle to avoid the costs and uncertainties of continued litigation.
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